Taiwan stocks closed 0.19 percent lower on Thursday, with bellwether electronics shares such as TSMC losing momentum before foreign investors took a long vacation for a US holiday.
The main TAIEX share index ended down 11.63 points at 6,111.89, taking a breather after surging 1.06 percent on Wednesday. Turnover was flat with the previous session at T$77.84 billion ($2.32 billion).
Heavy buying by foreign investors pushed the index to its highest close in six-and-a-half weeks last week. "I would say the recent bullish sentiment that was helped by buying by foreign investors has abated but local funds still piled up with companies that make niche products or have better fundamentals," said Alex Huang, vice president of Barits International Securities.
The technology sub-index edged up 0.09 percent, while the financial sector was off 1.07 percent. Adding to the weakness were local media reports that parliament's financial committee had approved a draft on minimum taxes on individual and corporate income, which would affect corporate profits.
Taiwan Semiconductor Manufacturing Co (TSMC), the world's top contract chip maker and a darling of foreign funds, was flat. Investors also shunned smartphone maker High Tech Computer Corp after recent gains. It was the most active stock by turnover, falling 1.77 percent. But the issue had more than tripled so far this year.
Other high-price growth stocks also lost momentum. Microchip designer Mediatek Inc dropped 0.76 percent and Catcher Technology Co Ltd, which makes casings for laptop computers, slid 1.92 percent.